This document discusses the history and development of cooperatives in the Philippines. It provides details on early cooperatives organized under Rizal and the Rural Credit Law passed in 1916. It also outlines the objectives of the Agricultural Credit and Cooperative Financing Administration established in 1952 to provide liberal credit to small farmers and promote cooperative associations. Finally, it defines the different types of cooperatives under Republic Act No. 9250 and privileges afforded to registered cooperatives.

2. Submitted by:
ANALYN M. SIOSON
BSBA – 4MM
MYERSON CHIN
BSBA – 4MM
Submitted to:
TERESITA MAGBITANG
Professor

3.  A Filipino travelling in Europe during the later
part of the 19th century must have been
impressed with the success of new economic
movement in effecting a gradual metamorphosis
of the economic and social life of the people ion
those countries at the turn of the century,
Filipinos, in increasing number, traveled and
studied abroad and brought from with them new
ideas. It was this group of Filipinos who in close
in contact wit the new economic movement in
Europe. Two names monthly of note were Dr.
Jose Rizal and Teodor Sandiko.
 One noteworthy group organized by Rizal was
the La Sociedad de los Abacaleros (Society and
Abaca).

4. The Rural Credit Law
 As soon as civil government was
established, Filipino participation in
government was encountered. Teodor
Sandiko, then governor of Bulacan,
prepared a belt patterned after the
Ruffeisen type of credit whom and had
Rep. Alberto Barreto of Zambales
sponsor the bill in the Jomer House of
Congress. The principal aim of this bill
was to protect and develop the
agricultural interest of the country.

5.  The administration of the Rural
Credit Law was entrusted to the
Bureau of Agriculture the first
rural credit association that was
organized under this Law was the
Agricultural Credit Cooperative
Association of Cabanatuan, Nueva
Ecija. It was formed on October
18, 1916.

6. Marketing Cooperatives
 The cooperative Marketing Law
(Act 2425) was enacted and
approved on December 9, 1927.
The rural credit associations
were designed to help finance.
The productive efforts of the
formers.

7. Causes of the failure of early
cooperatives in the Philippines
 Incompetent management
 Lack of proper understanding of the principles, practices
true aims, and purposes of cooperative associations
 Improper use of credits by the bonomers who, instead of
using money borrowed for production, spent it for fristad
or luxuries.
 Defective securities.
 Political interference particularly in the collection of
overdue accounts.
 Lack of compensation of officers
 Inadequate character and moral responsibility in handling
the other fellow’s money
 Lack of adequate safeguard against unscrupulous officers
who took advantage of their position to grant loans to
themselves and their compadres which later proved
disastrous to the system.

8. The ACCFA Financing Program
 The congress of the Philippine in
1952 enacted Republic Act 821.
This law established a system of
liberal credit which is specially
designed to meet the needs of the
small farmer

9. Agricultural Credit and Cooperative Financing
Administration (ACCFA) to implement the great task
of rural financing four general and interrelated
objectives of the law are set forth as follows:
 To assist small farmers in seaming
liberal credit.
 To promote the effective groupings of
farmers into cooperative associations
 To establish on orderly and
systematic marketing machinery for,
and controlled by the small farmers.
 To place agriculture or a basis of
economic equally with other
industries.

10. Types of Cooperation under
Republic Act No. 9250
 Credit Cooperatives- is one that
promotes and undertakes savings and
leading services among its members.
 Consumer Cooperative- is one the
primary purpose of which is to procure
and distribute commodities to
members and non-members
 Producers Cooperative- is one that
undertake joint production whether
agricultural or industrial.

11.  Marketing Cooperative- is one which engage in the
supply of production input to members and markets
their products.
 Service Cooperative- is one which engages in
medical and dental
care, hospitalization, transportation, insurance and
other services.
 Multi-Purpose Cooperative- combine two(2) or more
of the business activities of these different types of
cooperatives;
 Advocacy Cooperative- is a primary cooperative
which promotes and advocates cooperatives among its
members and the public through socially-oriented
projects, education and training, research and
communication, and other similar activities to reach out
to its intended beneficiaries;

12. What are the Categories of
Cooperatives?
 Cooperative shall be categorized
according to membership and territorial
consideration. In terms of membership,
cooperatives shall be categorized into:
 Primary – the members of which are
natural person of legal age.
 Secondary – the members of which are
primaries.
 Tertiary – the members are secondary’s
upward to one (1) or more apex
organizations.

13. Who can be members of a
Cooperative?
 A cooperative has two kinds of
members: regular members and
associate members
 A regular member is entitled to all the
rights and privileges of membership as
stated in the Cooperative Code and the
coops’ by laws.
 An associate member has no right to
vote and he voted upon and is entitled
only to such rights and privileges
provided by the cooperative’s by laws.

14. What are the Privileges of a
Cooperative?
 Cooperative registered under R.A
6938 shall, notwithstanding the
provisions of any law to the
contrary, be also accorded the
following privileges:

15.  Cooperatives shall enjoy the privilege of
depositing their sealed cash boxes or
containers, documents or any valuable
papers in the safes of the municipal or city
treasurers and other government offices free
of charge, and the custodian of such articles
shall issue a receipt acknowledging the
articles received duly witnessed by another
person;
 Cooperatives organized among government
employees, notwithstanding any law or
regulation to the contrary, shall enjoy the free
use of any available space in their agency,
whether owned or rented by the Government.

16. END